Question 1

Doctors find that one aspirin per day reduces the risk of heart attacks. Demand for aspirin will

Accepted Answer

A)  increase, so that equilibrium price and equilibrium quantity will increase. 
B)  decrease, so that equilibrium price and equilibrium quantity will increase. 
C)  increase, so that equilibrium price will decrease and equilibrium quantity will increase. 
D)  increase, but the new equilibrium price and quantity are indeterminate. 
A)  increase, so that equilibrium price and equilibrium quantity will increase. 
B)  decrease, so that equilibrium price and equilibrium quantity will increase. 
C)  increase, so that equilibrium price will decrease and equilibrium quantity will increase. 
D)  increase, but the new equilibrium price and quantity are indeterminate. A

Question 2

When does a shortage occur?

Accepted Answer

A shortage occurs when the price is below the equilibrium price. When the price is less than the equilibrium price, the quantity demanded is greater than the quantity supplied.

Question 3

Young drivers often buy used cars. An increase in the legal driving age to twenty-one shifts the demand curve for used cars leftward, whereas lowering the age to fifteen shifts the demand curve rightward.

Accepted Answer

A) True 
 B)False  True

Question 4

In 2014, the price of peanuts was rising, which led peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. Suppose the effect on the buyers was larger than the effect on the sellers. Consequently, in the current market for peanut butter there is a ________ in the price of peanut butter and ________ in the quantity of peanut butter.

Accepted Answer

A)  rise; an increase 
B)  rise; a decrease 
C)  fall; a decrease 
D)  fall; an increase 
A)  rise; an increase 
B)  rise; a decrease 
C)  fall; a decrease 
D)  fall; an increase

Question 5

-In the above figure, what is the minimum supply price for the fourth gallon of ice cream?

Accepted Answer

A)  $2.00 
B)  $3.00 
C)  $4.00 
D)  $5.00 
A)  $2.00 
B)  $3.00 
C)  $4.00 
D)  $5.00

Question 6

Which of the following influences people's buying plans and does not shift the demand curve?

Accepted Answer

A)  the price of the good 
B)  the prices of related goods 
C)  income 
D)  preferences 
A)  the price of the good 
B)  the prices of related goods 
C)  income 
D)  preferences

Question 7

Which of the following pairs of goods are most likely substitutes?

Accepted Answer

A)  DVDs and DVD players 
B)  cola and lemon lime soda 
C)  lettuce and salad dressing 
D)  peanut butter and gasoline 
A)  DVDs and DVD players 
B)  cola and lemon lime soda 
C)  lettuce and salad dressing 
D)  peanut butter and gasoline

Question 8

Consider gardening books. What will happen to the market for these books as gardening becomes more popular and simultaneously printing costs increase?

Accepted Answer

A)  The price of gardening books definitely increases. 
B)  The quantity of gardening books definitely increases. 
C)  The price of gardening books might increase or decrease. 
D)  The quantity of gardening books definitely stays the same. 
A)  The price of gardening books definitely increases. 
B)  The quantity of gardening books definitely increases. 
C)  The price of gardening books might increase or decrease. 
D)  The quantity of gardening books definitely stays the same.

Question 9

Computers are a complement to computer software. Suppose the price of a computer falls. How does this fall in price affect the demand for computer software and the demand curve for computer software?

Accepted Answer

The fall in the price of a complement in

Question 10

Suppose we observe that both the equilibrium price of film cameras and the equilibrium quantity of film cameras have fallen. Which of the following could be responsible for this?

Accepted Answer

A)  Consumers' preferences changed in favor of digital cameras. 
B)  technological advances in film camera production 
C)  Workers who make cameras received a pay raise. 
D)  The price of digital cameras increased. 
A)  Consumers' preferences changed in favor of digital cameras. 
B)  technological advances in film camera production 
C)  Workers who make cameras received a pay raise. 
D)  The price of digital cameras increased.

Question 11

The "law of demand" states that changes in

Accepted Answer

A)  demand are related directly to changes in supply. 
B)  the quantity demanded of a good are not related to changes in the quantity supplied. 
C)  the quantity demanded of a good are inversely related to changes in its price. 
D)  demand are inversely related to changes in supply. 
A)  demand are related directly to changes in supply. 
B)  the quantity demanded of a good are not related to changes in the quantity supplied. 
C)  the quantity demanded of a good are inversely related to changes in its price. 
D)  demand are inversely related to changes in supply.

Question 12

Between 2000 and 2015, advances in PC production technology increased the supply of PCs sharply. The demand for PCs also increased, but not nearly as much as the supply did. As a result, the price of a PC ________ and the quantity of PCs sold ________.

Accepted Answer

A)  rose; decreased 
B)  rose; increased 
C)  fell; decreased 
D)  fell; increased 
A)  rose; decreased 
B)  rose; increased 
C)  fell; decreased 
D)  fell; increased

Question 13

-The above figures show the market for oranges. Which figure(s) shows the effect of existing orange growers increasing the size of their orange groves?

Accepted Answer

A)  Figures A and C 
B)  Figures B and D 
C)  Figure A 
D)  Figure D 
A)  Figures A and C 
B)  Figures B and D 
C)  Figure A 
D)  Figure D

Question 14

Crude oil can be refined into home heating oil or gasoline. If very cold weather caused the price of home heating oil to increase then, the

Accepted Answer

A)  supply of gasoline would increase. 
B)  demand for gasoline would increase. 
C)  equilibrium price of gasoline would rise. 
D)  Both answers A and C are correct. 
A)  supply of gasoline would increase. 
B)  demand for gasoline would increase. 
C)  equilibrium price of gasoline would rise. 
D)  Both answers A and C are correct.

Question 15

-The figure illustrates the demand for and supply for jeans. Suppose jeans are a normal good and people's incomes increase. At the initial price of $50 for a pair of jeans, after the increase in income the quantity demanded is ________ than the equilibrium quantity and there is a ________ of jeans.

Accepted Answer

A)  greater; surplus 
B)  greater; shortage 
C)  less; surplus 
D)  less; shortage 
A)  greater; surplus 
B)  greater; shortage 
C)  less; surplus 
D)  less; shortage

Question 16

Auto workers negotiate a wage increase. How does this wage hike affect the supply of cars?

Accepted Answer

A)  It decreases the supply. 
B)  It increase the supply. 
C)  It has no effect. 
D)  There is not enough information to tell if the change increases, decreases, or has no effect on the supply of cars. 
A)  It decreases the supply. 
B)  It increase the supply. 
C)  It has no effect. 
D)  There is not enough information to tell if the change increases, decreases, or has no effect on the supply of cars.

Question 17

The price of the steel used to produce car engines increases. How does this price hike affect the demand curve for cars?

Accepted Answer

A)  The demand curve shifts leftward. 
B)  The demand curve shifts rightward. 
C)  The demand curve does not shift. 
D)  There is not enough information to tell how the change shifts the demand curve for cars. 
A)  The demand curve shifts leftward. 
B)  The demand curve shifts rightward. 
C)  The demand curve does not shift. 
D)  There is not enough information to tell how the change shifts the demand curve for cars.

Question 18

The quantity supplied of a good or service is the quantity that a producer ________ at a particular price during a given time period.

Accepted Answer

A)  is willing to sell 
B)  actually sells 
C)  needs to sell 
D)  should sell 
A)  is willing to sell 
B)  actually sells 
C)  needs to sell 
D)  should sell

Question 19

-The above figure shows the market for bicycles. When there is a physical fitness craze so that everyone wants to exercise the

Accepted Answer

A)  demand curve for bicycles shifts from D1 to D2. 
B)  demand curve for bicycles shifts from D2 to D1. 
C)  demand curve and the supply curve of bicycles do not shift. 
D)  supply curve of bicycles shifts from S1 to S2. 
A)  demand curve for bicycles shifts from D1 to D2. 
B)  demand curve for bicycles shifts from D2 to D1. 
C)  demand curve and the supply curve of bicycles do not shift. 
D)  supply curve of bicycles shifts from S1 to S2.

Question 20

If the price of aluminum used to make bicycles increases, the price of a bicycle rises because of a

Accepted Answer

A)  rightward shift of the demand curve for bicycles. 
B)  rightward shift of the supply curve of bicycles. 
C)  leftward shift of the demand curve for bicycles. 
D)  leftward shift of the supply curve of bicycles. 
A)  rightward shift of the demand curve for bicycles. 
B)  rightward shift of the supply curve of bicycles. 
C)  leftward shift of the demand curve for bicycles. 
D)  leftward shift of the supply curve of bicycles.

Doctors find that one aspirin per day reduces the risk of heart attacks. Demand for aspirin will

When does a shortage occur?

Young drivers often buy used cars. An increase in the legal driving age to twenty-one shifts the demand curve for used cars leftward, whereas lowering the age to fifteen shifts the demand curve rightward.

-In the above figure, what is the minimum supply price for the fourth gallon of ice cream?

Which of the following influences people's buying plans and does not shift the demand curve?

Which of the following pairs of goods are most likely substitutes?

Consider gardening books. What will happen to the market for these books as gardening becomes more popular and simultaneously printing costs increase?

Computers are a complement to computer software. Suppose the price of a computer falls. How does this fall in price affect the demand for computer software and the demand curve for computer software?

Suppose we observe that both the equilibrium price of film cameras and the equilibrium quantity of film cameras have fallen. Which of the following could be responsible for this?

The "law of demand" states that changes in

Between 2000 and 2015, advances in PC production technology increased the supply of PCs sharply. The demand for PCs also increased, but not nearly as much as the supply did. As a result, the price of a PC and the quantity of PCs sold .

-The above figures show the market for oranges. Which figure(s) shows the effect of existing orange growers increasing the size of their orange groves?

Crude oil can be refined into home heating oil or gasoline. If very cold weather caused the price of home heating oil to increase then, the

-The figure illustrates the demand for and supply for jeans. Suppose jeans are a normal good and people's incomes increase. At the initial price of $50 for a pair of jeans, after the increase in income the quantity demanded is than the equilibrium quantity and there is a of jeans.

Auto workers negotiate a wage increase. How does this wage hike affect the supply of cars?

The price of the steel used to produce car engines increases. How does this price hike affect the demand curve for cars?

The quantity supplied of a good or service is the quantity that a producer ________ at a particular price during a given time period.

-The above figure shows the market for bicycles. When there is a physical fitness craze so that everyone wants to exercise the

If the price of aluminum used to make bicycles increases, the price of a bicycle rises because of a

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 3: Demand and Supply

Doctors find that one aspirin per day reduces the risk of heart attacks. Demand for aspirin will

When does a shortage occur?

Young drivers often buy used cars. An increase in the legal driving age to twenty-one shifts the demand curve for used cars leftward, whereas lowering the age to fifteen shifts the demand curve rightward.

-In the above figure, what is the minimum supply price for the fourth gallon of ice cream?

Which of the following influences people's buying plans and does not shift the demand curve?

Which of the following pairs of goods are most likely substitutes?

Consider gardening books. What will happen to the market for these books as gardening becomes more popular and simultaneously printing costs increase?

Computers are a complement to computer software. Suppose the price of a computer falls. How does this fall in price affect the demand for computer software and the demand curve for computer software?

Suppose we observe that both the equilibrium price of film cameras and the equilibrium quantity of film cameras have fallen. Which of the following could be responsible for this?

The "law of demand" states that changes in

Between 2000 and 2015, advances in PC production technology increased the supply of PCs sharply. The demand for PCs also increased, but not nearly as much as the supply did. As a result, the price of a PC ________ and the quantity of PCs sold ________.

-The above figures show the market for oranges. Which figure(s) shows the effect of existing orange growers increasing the size of their orange groves?

Crude oil can be refined into home heating oil or gasoline. If very cold weather caused the price of home heating oil to increase then, the

-The figure illustrates the demand for and supply for jeans. Suppose jeans are a normal good and people's incomes increase. At the initial price of $50 for a pair of jeans, after the increase in income the quantity demanded is ________ than the equilibrium quantity and there is a ________ of jeans.

Auto workers negotiate a wage increase. How does this wage hike affect the supply of cars?

The price of the steel used to produce car engines increases. How does this price hike affect the demand curve for cars?

The quantity supplied of a good or service is the quantity that a producer ________ at a particular price during a given time period.

-The above figure shows the market for bicycles. When there is a physical fitness craze so that everyone wants to exercise the

If the price of aluminum used to make bicycles increases, the price of a bicycle rises because of a

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Between 2000 and 2015, advances in PC production technology increased the supply of PCs sharply. The demand for PCs also increased, but not nearly as much as the supply did. As a result, the price of a PC and the quantity of PCs sold .

-The figure illustrates the demand for and supply for jeans. Suppose jeans are a normal good and people's incomes increase. At the initial price of $50 for a pair of jeans, after the increase in income the quantity demanded is than the equilibrium quantity and there is a of jeans.